Midnight Cookie Company produces and delivers gourmet cookies and ice cream until 1:30 a.m. from its three Seattle area locations. Presented is monthly cost and sales information for cookies at one of Midnight's locations.

MonthSales (Dozens)Total Costs

January. . . . . . . . . . . . . . . . . . . . .6,800 . . . . . . . . . . . . . . . . . .$30,650

February . . . . . . . . . . . . . . . . . . . 7,800. . . . . . . . . . . . . . . . . .35,336

March. . . . . . . . . . . . . . . . . . . . .5,500 . . . . . . . . . . . . . . . . . .29,700

April. . . . . . . . . . . . . . . . . . . . . .1,000 . . . . . . . . . . . . . . . . . .25,000

May. . . . . . . . . . . . . . . . . . . . . . . 6,100 . . . . . . . . . . . . . . . . . .30,600

June. . . . . . . . . . . . . . . . . . . . . . 4,500 . . . . . . . . . . . . . . . . . .28,670

Required

a. Using the high-low method, develop a cost-estimating equation for total monthly costs.

Answer rating: 100% (QA)

To develop a costestimating equation for total monthly costs using the highlow method we need to fir... View the full answer